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Who profits from a $45 billion investment in immigrant detention?

ICE's big new budget offers upside for private prison companies and the communities staffing new facilities.

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Above, an aerial view of the Bluebonnet Detention Center in Anson, Texas, in May.
Above, an aerial view of the Bluebonnet Detention Center in Anson, Texas, in May.
Brandon Bell/Getty Images

Across the country, people suspected of being undocumented immigrants have been arrested in their cars, walking down the street, and at work. Once in federal custody, they need somewhere to sleep to await processing and potential deportation.

This is why Congress passed an unprecedented $45 billion for immigration detention, which will add tens of thousands of new beds to support the Trump administration’s goal of deporting 1 million immigrants each year.

ICE's big new budget provides tremendous opportunity for private prison companies that operate these facilities — and new jobs for the communities where these detention centers are concentrated.

Two companies are likely to gain the most from the more than tripling of U.S. Immigration and Customs Enforcement’s annual detention budget: CoreCivic and the GEO Group.

“We are in an unprecedented environment, with rapid increases in federal detention populations nationwide,” CoreCivic CEO Damon Hininger said in the company’s second quarter earnings call.

CoreCivic’s revenue from ICE last quarter went up by 17%, considering the “highest detention populations ever recorded by ICE, which has been our largest customer for over 10 years,” Hininger said.

ICE pays roughly $165 a day for each person held in detention. More arrests mean more money for these companies.

And that’s exactly what GEO Group’s George Zoley said happened during the second quarter earnings call, citing the “highest level of ICE utilization in our company's history.”

Now, they’re making thousands more beds available as billions in new funding comes through. “The intensity has really picked up,” Hininger said.

Under new contracts with ICE, private prison companies are filling up detention centers in Texas, California, New Jersey, Michigan, and Georgia, bringing in millions in revenue.

And more contracts for new detention centers are on the horizon as the administration aims to more than double its number of detention beds to more than 100,000.

Already, some 180 detention facilities are used by ICE to hold immigrants. That detention space is concentrated in rural Louisiana and Texas, according to TRAC.

Polk County, in deep east Texas, is home to the IAH Polk Adult Detention Facility.

“We're a very rural county,” said Polk County Judge Sydney Murphy. “Mostly lots of timber and pine trees.”

The median annual household income there is under $60,000 and the employment rate is about 45%. “Limited resources all the way around,” she said.

Since the Trump administration ramped up detention and deportation, Murphy has already seen it affect the local economy.

“There is an increase in employment out there of our local residents,” she said.

The immigrant detention center is a top employer in the county; it’s run by a private company called Management & Training Corporation. Those jobs are well compensated, she said.

“They have good retirement, they have good insurance,” she said. “And here, for a rural community, that's big.”

Other major employers in the county are the prison, a casino, and wood and paper manufacturers.

But the detention center brings more than just jobs, Murphy said. The county gets paid based on how many people are locked up because of a public-private partnership with the Management & Training Corporation.

“We receive a portion of the funds that ICE is paying,” she said, “It's revenue for us.”

While detention centers can bring jobs and revenue to places like Polk County, experts who have looked at both immigration and private prison infrastructure growth have said there’s no evidence that they bring about a big economic boom or have a multiplier effect on the local economy.

And while the detention center in Polk County and other parts of the country may provide jobs, the people being held inside these facilities are removed from their economic roles.

“A lot of times with my clients, it's the primary breadwinner that's the one that's detained in detention,” said Jose Luis Martinez, legal director for Justice for All Immigrants, who represents immigrant clients held in Polk County and other parts of southeast Texas.

While the government is paying $165 a day to keep someone locked up, that’s also one less person working a hard-to-fill job. And a growing economy depends on an expanding labor force.

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